Palantir CEO Karp says AI rivals' business model is 'effing insane'

Palantir cofounder and CEO Alex Karp went on a nearly 20-minute unbroken monologue on CNBC, attacking rival AI companies Anthropic and OpenAI and accusing them of having an 'effing insane' business model. According to The Independent, Karp argued that these firms simultaneously oversell the risks of AI to the public while aggressively selling powerful AI models to corporations and governments, calling the contradiction misleading to both partners and the public.

"effing insane" business model

Karp expressed concern during the interview that his own candid remarks might get him kicked off the air, as The Independent reported. The intensity of the monologue reflected his frustration with what he sees as a fundamental hypocrisy in the AI industry.

Separately, Forbes reported that Karp's criticism centered on the outsourcing of military and national security technology to Silicon Valley AI companies, a practice he argued the U.S. should avoid. He claimed that CEOs he speaks with privately are 'livid' with leading AI firms over these concerns.

"CEOs he speaks with privately are 'livid' with leading AI firms"

Forbes also noted that Karp pointed to Palantir's recent partnership with Nvidia as a way to address those concerns, enabling more secure AI use for government applications. The outburst highlights growing tensions between defense-focused tech firms and the consumer-facing AI giants that dominate headlines.